Chartered Accountant · ICAI M.No. 153926 · FRN 136869W
ASMT-10 — scrutiny
ASMT-10 is issued when the officer scrutinises your returns and finds discrepancies — for example GSTR-1 vs GSTR-3B mismatches, or ITC claimed beyond GSTR-2B. You reply in ASMT-11 explaining or correcting. Handled well, it often ends there without a demand.
DRC-01 — show-cause
DRC-01 is more serious: it is the show-cause notice accompanying a proposed demand of tax, interest and penalty (under Section 73 for non-fraud or 74 for fraud cases). You must reply (in DRC-06) within the time given, with evidence, before an order is passed. Ignoring it leads to a confirmed demand and recovery. Time limits are strict — act promptly.
How to respond — an example
Example: you receive an ASMT-10 saying your ITC exceeds GSTR-2B by ₹2 lakh. If it’s a timing difference you reconcile and explain in ASMT-11, and the matter closes. Left unanswered, it can escalate to a DRC-01 demand. The key in both is a clean reconciliation and a timely, documented reply. See how to respond to a GST notice. Our team can draft the reply.